More apparent corruption at Fannie and Freddie.
An ongoing investigation by a House of Representatives committee revealed a VIP lending unit at Countrywide Financial Corp. targeted senior leadership at Fannie Mae.
These documents linked 153 VIP loans to borrowers employed by Fannie and another 20 VIP loans to borrowers employed by Freddie Mac.
The Committee noted two spikes in the volume of VIP loans to Fannie and Freddie employees: one in 1998 as Countrywide negotiated a deal to sell billions of dollars in mortgages to Fannie at a discount. The second spike in the volume of VIP loans to Fannie employees occurred from 2001 to 2003 on the leading edge of a mortgage boom that lasted from 2002 to 2004.
And the VIP loan program went far beyond Fannie and Freddie employees.
It always amazes me how cheaply people can be bought off.
Curiouser and curiouser!
But what if Countrywide used their VIP loan program influence to get Fannie and Freddie to look the other way when they sold Fannie and Freddie bad mortgages?
Is Fannie going to now force them to repurchase those bad mortgages? (Meaning Bank of America would repurchase those bad mortgages because BofA bought Countrywide.)
A lot of bad BofA mortgages are already being pushed back to BofA to repurchase.
Fortunately for BofA, it’s too big to fail so the government would probably just give BofA the money to pay back the government for the bank fraud. Just kidding… I think.